Home buying is one of the rarest events that occur hardly once or twice in anyone’s life. It’s expensive, its time consuming and requires a number of documents to be furnished in order to get a home loan. Getting a home loan at attractive interest rates is a different ball game and you must prepare beforehand to get things right. We have discussed a few pointers that might be helpful in increasing your eligibility for home loan
- File a Joint Application – You can significantly improve your chances of getting a home loan if you add a co applicant as the combined income is higher so are your chances of getting a better rate and eligibility for home loan. The co-applicant can be your spouse or your blood relative.
- Go For Longer Tenure – If you increase the tenure of your home loan from 5 years to 20 years it may double up your chances of getting a home loan. As the banks tend to earn higher returns in terms of interest, loans taken for a period higher than 5 years have higher chances of approval.
- Decrease other Liabilities – The lesser debts you have the more chances will be there to get a home loan, try to minimize your liabilities such as a credit card, vehicle loan, personal loan etc. Try to repay existing loans, if you are a defaulter for any credit card or previous loan you must visit the loan authority and get it settled and obtain the settlement letter so that it won’t weigh down your CIBIL Score and eligibility for home loan
- Show other sources of Income – Do you get any rental income, FD returns or income from share market? Make sure to furnish these details when you apply for a home loan. It increases your eligibility for home loan
Getting a home loan is no rocket science you just need right chain of documents, good CIBIL Score and acceptable paying capacity and you are good to go.
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